CGST Official busts fraudulent availment of ITC Racket of Rs.78 crore

CGST Bhiwandi Commissionerate in Mumbai Zone based upon a specific intelligence has busted a case of non-payment of GST and fraudulent availment of Input Tax Credit, amounting to Rs. 78 Crore against M/S A S Agri and Aqua LLP having GSTIN 27ABLFA4344D1ZM.

Three of the partners of the firm who founded it (together with 16 other partners) were detained in judicial custody until 12.08.2022, pursuant to Section 69 of the CGST Act, 2017 for violating Section 132 of the CGST Act, 2017, based on tangible evidence discovered during the inquiry.

According to Section 13(2)(b) of the CGST Act of 2017, the aforementioned firm is liable for GST in the amount of Rs. 53 Cr. on advance payments of Rs. 292 Cr. received from clients of work contracts for the construction of poly homes. Furthermore, in violation of Section 17(5)(c) of the CGST Act of 2017, the aforementioned firm illegally claimed ITC worth Rs. 25 Cr on Work Contract Services for the construction of Immovable Property.

This case is a component of the CGST Mumbai Zone’s special campaign against tax evaders and bogus ITC networks. The CGST Bhiwandi Commissionerate has so far detained 14 people in the past year alone.

Data analysis and network analysis tools are being used by CGST officials to locate and track suspected fraudsters. In the upcoming days, CGST officers will step up their campaign against tax evaders.